Sunday, March 16, 2008

The Rising Cost Of Silver

I reported a year ago on our silver jewellery site that Silver historically has always been a forerunner for determining future commodity prices. When Silver doubled in price it was not too long before oil, wheat, rice, copper etc all began to escalate.The omens for the near future are not good. Silver prices continue to climb as investors struggle to find a safe haven for their money whilst dumping equities and stocks.It may of course all change however with the US economy in an unstoppable recession it seems in the short term this is unlikely.My only advice is to that if enough people cut back on their consumption of commodities such as Oil, gas and the precious metals then the drop in demand will create a downturn in the silver price forcing the big investors to maybe return to investing in essential growth for GDP producing companies, which can only be of benefit to the world economy.